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In order to implement the directions of the Prime Minister to privatise
Pakistan Steel Mills Corporation (PSMC) on fast track basis, a high level
meeting between the Federal Minister for Privatisation & Investment Dr. Abdul
Hafeez Shaikh and the Federal Minister for Production & Special Initiatives
Mr. Jahangir Tareen was held here today.
The meeting decided to award contract to the successful Financial Advisor by
the end of May 2005 and to hold bidding of PSMC by the end of December 2005.
The Privatisation Commission (PC) had invited Expression of Interest (EOI)
from reputable firms or consortiums of firms for pre-qualification to act as
Financial Advisor (FA) for evaluating the privatisation potential of Pakistan
Steel Mills Corporation (PSMC) and to lead its privatisation process. PC has
received 18 EOIs from local and foreign parties to act as FA, which include
AXON, Corus Consulting, HSBC Bank plc, McLellan and Partners Ltd., Arif
Habib Securities Ltd., Bearing Point, BMA Capital Management, Citi Group,
Crescent Standard Investment Bank, Elixir Securities Pakistan (Pvt.) Ltd.
Global Securities Pakistan Limited, Investment Banking Division Habib Bank
Limited, Jahangir Siddiqui Capital Markets Ltd., Investment Banking KASB Bank
Limited, MCB, Noman Abid & Company Limited, ORIX and Standard Chartered Bank.
All the eighteen (18) interested parties have been advised to submit their
technical and financial proposals by May 9, 2005.
Both the Ministers also agreed and decided to hold the Bidding of Pak Arab
Fertilizer (Private) Limited (PFL) on 14 May 2005 while the last date for
submission of Earnest Money of Rs. 150 million is 10 May 2005.
Eight prospective parties, which have already been Pre-Qualified for the
privatisation of PFL are expected to participate in the Bidding Process. The
eight parties are Consortium of Fatima Group, Dawood Hercules Chemical
Limited, Consortium of Nishat Chunian and Umar Fabrics, EMG (conditionally
pre-qualified), Al-Ghurair Investment L.L.C., Husnain Cotex Limited,
Consortium of Jahangir Siddiqui Capital Markets (Pvt.) Ltd & Jahangir Siddiqui
Investment Bank Limited and Consortium of Haji Ghani Usman Group
(conditionally pre-qualified).
PFL was established as a result of protocol between the Government of Pakistan
and State of Abu Dhabi. The company was incorporated in 1973 and is currently
owned by National Fertilizer Corporation of Pakistan (Private) Limited (NFC)
and International Petroleum Investment Company of Abu Dhabi (IPIC) in the
ratio of 52% and 48% respectively with a paid-up capital of Rs.743.061
million. PFL is the largest fertilizer complex in Pakistan and the only
factory producing Calcium Ammonium Nitrate (CAN) and Nitro-phosphate (NP)
commonly known as compound fertilizer. Raw materials for manufacture of the
fertilizers are natural gas supplied by SuiNorthern Gas Pipelines Limited
through its transmission network and rock phosphate imported form Jordan/Moroco.
The project is located at Khanewal Road, Multan. The site area comprises 302
(301.47) acres, which includes area for the factory and the housing colony.
The company owns this land area.